Land O'Lakes Inc., a dairy cooperative headquartered in Arden Hills, Minn., and Visalia, Calif.-based California Bioenergy LLC (CalBio) announced the launch of a first-of-its-kind collaboration to support the financing, installation and management of on-farm methane digesters to generate renewable compressed natural gas (R-CNG) fuel in California. The partnership creates an innovative farmer-led model for "barn to biogas" that could shape nationwide solutions to agricultural methane emissions and unlock new revenue streams for dairy farmers.

As one of the nation's largest agricultural cooperatives, Land O'Lakes said it is uniquely positioned to tap into the potential power of California dairy farmers to generate renewable energy from farm waste. CalBio provides the expertise needed to develop, execute and manage on-farm methane digesters, as well as market R-CNG credits in California, in a manner that is cost-effective for farmers.              

The partnership with CalBio will also help Land O'Lakes’ dairy member-owners in California meet new state standards that call for a 40% reduction in dairy and livestock manure-related methane emissions from 2013 levels by 2030, the companies said.

"Land O'Lakes and CalBio are creating the end-to-end sustainability infrastructure that farmers need to make 'barn-to-biogas' a reality," said Matt Carstens, senior vice president, Land O'Lakes SUSTAIN. "This is impact investing at its best — eliminating barriers to the adoption of new sustainability technology, unlocking new revenue streams for farmers, cutting emissions and creating a public good."

To further its commitment to supporting member-owners around environmental sustainability, Land O'Lakes SUSTAIN recently launched Land O'Lakes SUSTAIN Innovation Financing, which offers eligible member-owners up to $3 million in financing for large-scale sustainability projects, including methane digesters. This financing is available specifically to help Land O'Lakes dairy member-owners implement new technologies or management systems focused on driving measurable outcomes for air, soil or water, the companies said.

To read more about Land O'Lakes SUSTAIN, visit